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Teresa Carlson

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38
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2016-05-17
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2016-05-17
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  1. Definitely they are, there's no doubt. But if you consider the true mission type of applications, what government or large enterprises worry about is if they have their entire mission running on something over here, it is a scary value proposition, right? You can't just shut it down if you're running Department of Homeland Security or Veterans. So you have to have a model. And that's what we bring to the table, a thoughtful model and a long-term view to help them feel really comfortable about their move. And if they feel comfortable and they start moving things, again, it's that trying, then they're like, oh, I see how this works. Because again, startups, they don't have this issue, right? But in large enterprises that have been around for years and years and years and they're running these mission from a lot of locations, a lot of legacy, then the move needs to be made thoughtfully. But what we find is...

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  2. Well, I think what does that really mean? I think all it really means is a customer has a set of tooling that they've done already. They have a bunch of applications they've built and they've invested in. Now they're trying to make this transitional shift to the cloud. This allows them in a very cost-effective way to be able to take advantage of both while they move over time because they can't do it all overnight. They have to plan. So what they have on-prem, we want to help them take advantage of it while they make a move over to the cloud. It's important, right? You can't just sit there, have two things running. You need to be able to take advantage of your entire enterprise.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  3. Well, in terms of the hybrid cloud model, we believe that's around for a long time because customers, you know, they're not going to transition overnight and they need to be able to take advantage of what they built over the years. Now, we want to help them move and get progressive as fast as we can into AWS Cloud. But at the same time, we built tons of tooling now so that they can actually take advantage of what they have. So this sense of a hybrid cloud, I think, is there and can be utilized in many ways for many missions. And we want to be able to take advantage of what the customers have invested in.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  4. Can if they go and they say, I'm just going to build this private cloud, which generally means putting servers in a data center, that's not a scalable model. But what we help them do when you combine, and we work within these clouds, we have a model called Direct Connect as an example. And that Direconnect is where we take and we direct from our data centers into the customers. And it doesn't go through the internet. So it's directly from one data center to another. This allows them to scale what they're doing, do analytics. So you can combine the two. So it's not a one or the other, if that makes sense.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  5. But in general, when we talk about this debate of public versus private cloud, and I mean, I guess more commercially as well, then are they still benefiting then? Because one of the huge benefits of cloud is the R&D and the multi-tenant architecture. Exactly, that you're able to like what you alone can't do, but together all those resources, everybody benefits.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  6. Well, it's your own dedicated instances. It's not physical separation, the guns, guards, fences, and dogs kind of conversation. It's not that because you don't need that anymore. It is the logical, it's the virtual separation. It's the software-defined separation. It's the tools that make the difference. So many times in the definition of an RFP coming out, we end up being able to respond to many, many private clouds. The intelligence community is a cloud that we built. It's exactly like any cloud that we built around the world. It's just on their own network. So by sense, it's their own private cloud, but it is just like any other AWS region. It's just on a different network.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  7. What do you think of that? Well, so it's so interesting because my team, when we respond, when a customer acquires something in a big way from us, even before they there's any money transacted, we have to go through what we call a procurement process, a bid and proposal. The government will put out an RFP. We respond and then, you know, you win that, and then that's when you actually get going. So in the beginning of doing all this, we saw a lot of procurements come out that said private cloud. And my team, we would dig into this. We're like, okay, well, we can respond to this. So it really depends on what the definition, because within a commercial cloud environment, you can build a model that seems very private. It seems quarter enough.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  8. You're using these precious resources of people and Mindshare in building out infrastructure and using time when you can put them to work on the skills that really matter to get that mission completed or that workload that you really need. So really putting the resources back at work that you've hired them to do originally.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  9. That's the whole point of every other enterprise. Completely. Being held accountable to the tech you're buying and that it works. But with cloud, the big ahas, you know what? We can do this in a small way and demonstrate it and then scale it fast so that you can expend it. Exactly. That's right.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  10. I think it's across all, but you did sort of hit the nail on the head. The average government agency is behind in the types of infrastructure and tools they're running. So I think for them, it is sort of they see it as a path forward to getting things done faster, quicker having agility. But for others, I think there are a lot of new missions. I think for them, it's like, wow, I can do this much faster. I can really run this. I can do this faster. And I can demonstrate the results. And in government, we have not often talked about

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  11. I mean, you see it in their eyes at reinvent and they see the level of innovation. That is pretty mind blowing. I hear customers on stage like GE and Capital One and the intelligence community talking about what they've been able to achieve. NASA had customers say to me, that was the moment for me when I saw how you were innovating, they say if they can do this, I can do this. I think the moment they get it is not when they see it, but when they run their first like workload. They see these instances spin up and how quickly they can build something and try it and modify it, the lights just go on. And then once they dive in and they understand the security and compliance, it is really like, okay, let's go. Let's get moving.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  12. It's not required, but we do, you know, that's part of the architecture and designing when we're getting in there with our customers one-on-one. We say, okay, let's talk about the application you're running. What do you want to do? And then we make recommendations in their own security team makes recommendations. But the types of tooling that is available around security has gotten better, but I will still say companies are really needed to continue to think about cybersecurity and the analytics because this is not going to end. We need to continue to innovate and evolve these tools.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  13. Well, you know, it's interesting because I'd like to see them sometimes even ask more questions. Like some do, but I think we even, I was just on a panel last week and I was surprised about cyber and I was shocked encryption didn't come up and I actually brought it up because now encryption to me should just be a standard. Encryption should just be a standard for customers who have sensitive data, and they should manage the keys, and we provide all that for them so they can set it up, have their own keys and access and have analytics around that. So we believe it will be a standard and we always recommend it. We always recommend encryption.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  14. Right. So you mentioned encryption. Are you seeing recent political news and the context that the discussions and debates are playing out, are you seeing people ask more questions or are you asking people ask different questions? How are you guys tackling this one?

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  15. I really did not know that I was just trying to understand it. And a lot of that, once you get to a certain level, that it's their architecture and design, it's tools they choose then, right, to utilize based on their need. Also, it could be about backing up to different regions around the world as an example. So they might build a solution in one region and say, I want to take it and completely move. I want to have one on the East Coast and one on the West Coast because I don't ever want to lose. I want zero zero zero zero zero zero degrees that I could lose anything ever. So there's like there's all kinds of models, but that's the beauty of the cloud, that you have all these choices and options on how you create, and you can do it very, very fast. It doesn't take you forever to do this.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  16. So yeah, so they, so it's hard for us because we operate on a global scale, massive infrastructure. So we're not going to do a bunch of one-offs, if that makes sense. It makes sense. We just launch it across our fleet. Innately, customers inherit those security models that we put on the cloud. And then, of course, what we also share with them is the ability to use architecture and design in new ways like encryption tools that they can use. So what we always like to talk to them about, and I think you pointed out rightly, is what kind of security model are you looking for with this application? And then once they say, okay, it's at this level and then places around the world, it's very defined. So like here, if somebody says, I want a FedRamp low, okay, well, you can use any region around the world anywhere, you know, moderate, then okay, here's the controls. So you do have degrees of controls.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  17. These regulations Well, here's the interesting thing about the way we launch, and this is what we have to explain to people a lot. When we create a security and compliance control, if we launch it in one region, the other's inherit it.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  18. Compliance is one of the number one reasons cloud isn't as simple as saying, hey, I mean, it is as simple as turning a button, you know, being able to set something up within minutes, not just days and hours. But there is a social side of it, like the selling and the explanation and meeting these regulations. So are you finding that you're offering different versions and different packages, so to speak, that are like on a spectrum of degrees of compliance? Like here's the most compliant version, the least simply because some of these folks do not necessarily need as much compliance as say this. I mean, at the end of the day, it probably doesn't make a big difference because is the security underneath all the same?

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  19. You know, the security models that are set up or the Fed ramp, things that are there C just, which is the criminal information justice standard here in the US, which is very similar to things that are across the world, but we're trying to show them what's already been done on the security and compliance scope so they're not recreating a bunch of stuff because we do worry sometimes that if you put too many standards in place, it stagnates both innovation and you're not allowing startup companies to get into that innovative cycle because it sheds them out because their cost gets so high on trying to meet a bunch of standards. So one of the big things that AWS brings to the table is our infrastructure allows startups to jump on that and inherit all those security and compliance controls so they're caught

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  20. Obviously, everywhere we go, we do try to really understand what is the most important things to the customer. And we talk about beginning sort of with the end in mind or the working backwards process where we say if we wrote a press release today, what would that look like?

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  21. Well, we believe that certain groups of countries will probably come together and say, yeah, we'll use this cloud. So if you think about the Nordics as an example, the Benelects, or you think about the GCC countries. So, you know, over time, I think they have close relationships. And today, while it's not widely known, there are countries that already put their data in other countries as a safety net. So there are reasons that happens today, right? Because of they have bilateral agreements and things shaped up. So some of these will take big policy changes, but that's okay. We're in this for the long term, and we are also working with our policymakers around the world to educate them because this is very new, not to startups, but it is very new to large governments around the world. How do they take advantage of technology for this economic development and job?

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  22. Political, they have data sovereignty issues. So, yes, it does matter to governments. So we're trying to go to places where that does really matter. Also, we feel that in the fullness of Taiwan, also as these countries really do understand how they set up their security models, that they will sort of crowdsourcing groups, if that makes sense.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  23. Where people are, you know. Well, we've always said that in the fullness of time, well, we're going to have our clouds everywhere. We just launched a region in South Korea this year. We announced India and more on the horizon. So, you know, we'll continue to move fast and build clouds around the world. And what you find is that commercial companies really don't care. We find, believe it or not, companies in the Middle East are using our regions here in Northern Virginia or a region in Ireland. So they really, you know, they sort of go with, they'll look at pricing, but governments still do worry. They are very concerned.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  24. That's right It's completely true. You had asked me a question earlier did I see differences around the world? And the one thing I didn't say, which I should have, the Middle East, I think, is a really good example of what we had to do there was a little bit different. We actually had to create a model for mentoring in terms of business mentoring because they have some businesses that are really startupy there, but we met with a lot of them and said, okay, what do you need? What's your goals? And what we found is they were truly missing that business mentoring. So we've not only set up sort of the startup ecosystem model of tech and bringing them into a space that they can learn and crowdsource. But now we've brought mentors to mentor these companies on their business plan, ideas, thoughts. How do they break through a lot of barriers that startups in Silicon Valley do every day?

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  25. The other group that's really exciting is in Bahrain with the Economic Development Group and C5 Capital, which is a great partner of ours. It's in Europe and the Middle East. And we have an innovation center there that's been created in partnership with the three of us. And that facility is getting ready to open soon. And that's for across all of the GCC. So now we're creating these partners from a public private perspective on a worldwide basis.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  26. It's a physical space where we will staff and they will staff. It'll be very cool like an AWS pop-up where we'll bring people in, we'll be able to talk about new technology trends, support these startups in the way they get going, new entrepreneurs, do training and education, special guest speaking. Maybe you can come over and be one of our guest podcast gurus. And then the other funding that journeys.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  27. Oh my gosh, we started trying to get more women entrepreneurs and young girls excited about tech. The idea that a woman from anywhere can start it from home and can do part-time or full-time. So we like this idea of sort of the on-demand entrepreneur as well, which. I love what we're doing on a global basis. And I would have never dreamed how much progress we would have made, but there's a couple of areas I'll point out. One is in South Korea with the city of Busan. They came to us and wanted us to help them with an innovation center to bring startups and new companies into South Korea to get this area really flowing because they have media and entertainment and shipping. We're working with them on this innovation center.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  28. It is. I mean, of course, there are unique differences, and you have to understand the culture wherever you go around the world. But additionally, what I'm finding is on a global basis, companies now, because of the ability to use it as long as you have a computer and you have an internet connection or a mobile device, you can get going. So that is really exciting alone, by the way, just to hear people say we love that you've provided us access to this on-demand technology to help us get a company going.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  29. We are, and it's really cool. So, a couple examples I'll say is like 18F. Which is a new group that started out of GSA. 18F is based on the street it's on, 18F. There's sort of this little internal SWAT team of techies that are going in and they're helping government with their projects, number one projects that weren't doing as well or new projects they're trying to get off the ground. And they're trying to use innovative technologies and AWS, of course, is core to what they go to because they're like, okay, let's get your infrastructure up. Let's get going. Let's move fast. And then also the digital services office. I think they're a really great example. Those kind of things are happening. And I see that around the world. Liam Maxwell, who's the CTO of the UK government, sort of started the same kind of trend in the UK where he said, we are spending way too much money on tech and not getting the benefits. They've created their own digital service.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  30. And it's because of a lot of culture things too. Like when you have been in a world of the more traditional older-based kind of technologies and somebody brings to this idea of cloud, I would see some of our customers come in to do the training and we would actually spend that we would go to our site and we would go to the portal where you actually procure our tools. I would see people's eyes pop. It was like what you can build a data center in seconds. Of course, startups do it every day.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  31. Once we got in the door, we felt maybe the customers would scale faster than they actually did. Now, fast forward five and a half years, I'm very pleased with where our customers have gone. But I think we probably didn't realize how much sort of work we would have to do hand in glove with them to get them there. We did believe, which is probably a good thing.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  32. Because if they had a control that had generally been an old data center kind of model, we would sit and have the dialogue about why cloud was a different, more progressive model. So those dialogues in the early days were very important.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  33. Well, some of them, some of those principles, and still today is the utility base. You only pay for what you use. You have zero at front cost to get going. You can scale up and down so you can turn these things on and off and you can go global in seconds. So some of these kind of basic principles of cloud we brought in, we talked to them about, and then they set up and they defined what at the time they defined what they called a public and then a private. So that's really how we got going. And then as a result of that definition and the security and compliance regime that was set up FedRAMP, we were the first large cloud provider to pass that. And again, we rolled our sleeves up and we were in there with it. We were in the game with them every day passing that. And there were a lot of goodness in that. There's a lot of goodness in that because there were so many lessons learned on both sides, right?

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  34. Well, you know, cloud itself was not an unknown principle here, obviously. And you do have a lot of innovators in government. And as an example, NIST, which is the National Institute for Standards and Technology, has always been a group that has been looking at what's going on in the market, right? And so because Vivek Kundra, who was the CIO of the U.S. government at the time, he came in and started saying, why are we spending all this money on wasted projects and buying all this IT and we can't account for actually the success of what we've spent? And he said, look, there's these new technologies out there called cloud. So because of him, it actually paved the way for us to get super aggressive. And we went in and we worked with NIST. They were very open to it on sharing with them how AWS works.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  35. Well, you look at your controls, you print them out, and you show them to someone. Well, the minute you print it out, it's outdated. You want to look at security and compliance in a continuous manner, right? You want that's automation, the mechanisms of doing that. And that's what cloud is. That's what cloud's all about.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  36. Law and mandate for how they looked at security and compliance. And then they moved to this model for cloud called FedRamp. And FedRamp is really a model that takes in, controls. They look at security and compliance controls. And it's a model that also is set up to be more continuously monitored. So it's less of the paper-based, which is really good because you think about a paper-based security model. Yeah, what is that exactly?

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  37. We said we've said the whole time that we were going to meet and or exceed security and compliance requirements of our customers. And that's not only been for public sector, it's been for every market, financial health. And as a result of that, we did get very aggressive. And we got we rolled our sleeves up and we got in the game with not only helping government define what actual cloud computing was, but we also worked with GSA and the General Services Administration who was in charge of at the time and OMB, the Office of Management and Budget on number one, what is cloud, but also what is the right security and compliance model. And in fact, they had a really, they had sort of an outdated security and compliance model called FISMA, which was a paper-based model, which was

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source

  38. Private sector. It is a little bit different. You know, it's interesting because I tell everyone we started this business with AWS about five and a half years ago now. And when we first came in to public sector and we did originally start out here in U.S. federal government because we felt like we're a US-based company. And if we can't get the US government on board, it would be hard to go around the world and get other governments on board. And you know what we found was in the very beginning, we could not even get through two sentences without people saying you're not secure. Like it was the early days. It was all about security.

    2016-05-17 · a16z Podcast · a16z Podcast: The Cloud and The Public Sector · IDENTIFIED FROM THE TRANSCRIPT · source